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White & Case Advises Lenders on Financing of Polimery Police Project

Global law firm White & Case LLP has advised a syndicate of Polish and international financial institutions on a facilities agreement for the more than PLN 5 billion financing of the Polimery Police project.

The Polimery Police investment, which is the largest investment project in the history of Grupa Azoty and one of the largest investments in the chemical sector in Poland in recent years, will consist of a propane dehydrogenation installation (PDH installation), a polypropylene production installation (PP installation) and an auxiliary installation including storage terminal and logistics and shipment area. It is one of the largest projects ever implemented under the project finance formula in Poland.

The facilities agreement was executed between Grupa Azoty Polyolefins S.A. and a consortium of financial institutions consisting of Alior Bank S.A., Bank Gospodarstwa Krajowego, Bank Ochrony Środowiska S.A., Bank Polska Kasa Opieki S.A. (the bank coordinating the project financing transaction), BNP Paribas Bank Polska S.A., the European Bank for Reconstruction and Development, Industrial and Commercial Bank of China (Europe) S.A. Poland Branch, mBank S.A., Powszechna Kasa Oszczędności Bank Polski S.A., Powszechny Zakład Ubezpieczeń S.A., Powszechny Zakład Ubezpieczeń na Życie S.A., PZU Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych BIS 2, Santander Bank Polska S.A. and ICBC Standard Bank PLC (as hedge counterparty).

The facilities agreement grants a €487.8 million term loan, US$537.7 million term loan, PLN 150 million working capital VAT facility, and a US$180 million working capital loan facility.

Grupa Azoty S.A. and Grupa Azoty Zakłady Chemiczne 'Police' S.A. also entered into an agreement with Grupa Azoty Polyolefins S.A. and Bank Polska Kasa Opieki S.A. (acting as the facility agent and the security agent) in relation to a guarantee to provide a €105 million support loan in the form of a subordinated loan.

Disbursement of funds will occur after the fulfillment of the conditions precedent stipulated in the facilities agreement.

The White & Case team in Warsaw which advised on the transaction included partner Tomasz Ostrowski, local partners Nicholas Coddington and Michał Zieniewski, counsel Katarzyna Jakubiak and associates Mateusz Zawistowski, Jerzy Oppeln-Bronikowski and Mariusz Bujacz.

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